The Dollar strength persists, nearing a two-year high, despite the holiday-thinned trade in Asia. Investors are focusing on the Federal Reserve’s rate outlook, following Chair Jerome Powell’s hawkish stance. Markets are now pricing in limited rate cuts for 2025, estimated at just 35 basis points.
This has led to increased U.S. Treasury yields. The 10-year yield climbed above 4.6% earlier this week, marking a notable 40 basis points rise this month. Similarly, the two-year yield firmed at 4.3407%, further supporting the dollar's strength.
Asian shares rose slightly, driven by Wall Street's earlier performance, despite thin trading volumes. The MSCI Asia-Pacific index outside Japan ticked up 0.04%, contributing to a weekly rise of nearly 2%. Japan's Nikkei jumped 0.38%, projected to end 2024 with a significant 17% annual gain.
However, China’s CSI300 index and Shanghai Composite faced slight declines, losing 0.26% and 0.22%, respectively. These markets still showed yearly gains exceeding 10%, thanks to recent supportive measures from Chinese authorities to revive the economy.
The dollar index reached 108.15, marking a monthly gain of over 2%. Major currencies like the Australian and New Zealand dollars saw sharp declines, with the Aussie falling 0.45% to $0.6241 and the Kiwi dropping 0.51% to $0.5650.
Meanwhile, the euro eased by 0.18% to $1.0398, and the yen weakened, hovering near a five-month low at 157.45 per dollar. Japan’s fiscal challenges, including a $735 billion budget, weighed on the yen’s performance.
Global stocks appear set to end the year on a high, achieving a second consecutive annual gain of over 17%. The surge is attributed to U.S. markets, buoyed by AI-driven growth and robust economic performance. The S&P 500 futures edged up 0.02%, while Nasdaq futures gained 0.13%.
In Europe, EUROSTOXX 50 futures rose 0.04%, reflecting the broad optimism across global markets. Despite geopolitical tensions and economic headwinds, investor sentiment remains strong as 2024 concludes.
Don't miss the latest Forex trading news and analysis of the Dollar strength persists! Explore in-depth insights at our website: Fixio Markets Forex Blogs.
Discover how the dollar's strength persists near a two-year high, while Asia shares rise amid festive market trends.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)